TEAM INCENTIVES
When team incentives are offered by a Sponsor or other upline, there are Policy and ethical considerations of which Consultants should be aware.
Paparazzi recommends using Paparazzi Accessories or Paparazzi Back Office items as team incentives; however, non-Paparazzi items can be offered as team incentives.
If a Consultant offers a team incentive, ethics and professionalism require the team incentive to be awarded as promised and as described when offered. The incentive should be awarded promptly after the end of the qualification period. The Consultant offering the team incentive is NOT eligible to win his/her own incentive--he/she cannot give the award to himself/herself.
Each Consultant is free to decide whether or not to participate in team challenges and contests. All downline Consultants with open accounts (i.e., not cancelled accounts) are eligible for team incentives if that is how the offer is phrased (such as “my team” or “my downline”) including any Consultants who may be blocked from the team site or who have removed themselves from the team site. It is not the responsibility of the Sponsor or team leader to notify of the incentive, but if the incentive was open to all team members and the team leader knows or becomes aware that a blocked Consultant won the team incentive (such information the team leader can see in his/her Back Office such as highest PV or most enrollments in a month), it is that team leader’s ethical obligation to award the incentive prize to the blocked Consultant.
Consultants look to team leaders for guidance and instruction on how to achieve success as Paparazzi Consultants. Therefore, team leaders should use extreme caution when presenting team challenges and incentives so that team members do not feel pressured to participate, particularly when those challenges are tied to making purchases of Paparazzi Accessories. Consultants should only be purchasing products they believe they can reasonably sell within the next thirty days. Sponsors of team challenges and incentives should reference Sections 5.19 and 5.20 regarding Inventory Loading and Bonus Buying on all posts about a team challenge as a reminder to both the Sponsor and the participating Consultants. This reference should also include that a Consultant should not purchase more Accessories than s/he can sell in the next thirty days.
An example of a team incentive that is considered to be in violation of Policies and Procedures is offering dollar-for-dollar Back Office credits to Consultants for the exact dollar amount of their purchases. A team leader would be allowed to offer a set amount for a Back Office credit for the winner of a team incentive, for example, a $100 Back Office credit to the winner of the contest. Another team incentive known as “piece matching” would be allowed on a limited basis, where the team leader could, for example, offer to piece match up to 50 pieces for the winner of a contest. Because these examples are tied to a Consultant making a purchase from the Back Office, the team leader should include the language of Section 5.19 on any post relating to the promotion of the contest or incentive.
Team incentives are not to operate as enrollment incentives because that would be a violation of Policies. Offering any type of incentive to persuade someone to enroll as a Consultant is a violation of Policies. All team incentives must stay on the team page and not be shared out beyond the team page while the incentive is active. Once it is awarded, the winning Consultant(s) can post about the win on the Consultant’s own page(s). If someone chooses to share the team incentive off the team page, the person sharing off the team page will be held responsible for any violation of Policies regarding sharing a team incentive post.
When doing team incentives, you mustn't make the incentive into an illegal lottery. The elements of a lottery are:
1. Prize,
2. Chance, and
3. Consideration (it can be monetary, such as paying money or making a purchase, or non-monetary, such as requiring a participant to expend substantial time or effort that somehow benefits the Consultant in a material way such as completing a detailed questionnaire or making a mandatory store visit).
So if you have a prize to give away as part of the team incentive, you need to either (1) have the “chance to win” NOT based on purchase or any other Consideration or you need to (2) have there be no element of chance in winning the prize (i.e., the contest must be based on skill or performance, such as achieving objective criteria).
Here is an example of the first scenario where there is no "consideration": You have a contest based on sales and the ten highest sellers’ names are placed in a drawing for a prize.
An example of the second scenario where there is no element of "chance" would be: You offer a prize based on purchase, and every team member who purchases a certain amount will win the prize–there cannot be a drawing.
As team leaders contemplate team incentives and team contests, the sponsors of these incentives and contests should familiarize themselves with the following sections of Paparazzi Policy and Procedure.
Section 3.2 states in part: “. . . no Consultant can have a vested interest in more than one Consultant’s business or Paparazzi account, including but not limited to: order placing, account management, or any interest or action in a position with the Paparazzi genealogy which may define, enhance, or create an increase in commissions as a result.”
Section 5.11 provides in pertinent part, “. . . giving free gifts with a purchase.”
5.12 Recruiting or Enrolling Promotions
At no point may a Consultant advertise or promote an enrolling or recruiting promotion in which the price or value of the enrollment process is discounted. This includes but is not limited to, offering discounted Starter Kits, reimbursements, cash offers for enrollment, extra personal inventory, or anything else that is seen to increase the value or decrease the value of the enrollment process. This activity is often seen as an attempt to create an unfair advantage to other Consultants.
5.19 Inventory Loading
Consultants must never purchase more products than they can reasonably use or sell to Retail Customers in a month, and therefore must not influence other Consultants to purchase more product than they can reasonably sell within a month, as it may be seen as Bonus Buying and a violation of Section 5.20
5.20 Bonus Buying
Bonus Buying is strictly and absolutely prohibited. “Bonus Buying” involves any method of directly or indirectly maintaining or increasing a Consultant’s rank, volume, or commission level by purchasing products for which the Consultant does not have a bona fide need for personal use or bona fide reason or intent to resell within the next 30 days from the date of the order; or, placing orders personally with the intention of hitting or maintaining a rank, volume, or commission level. This also includes using multiple positions within the organization to achieve the goal of “buying” the bonus or achievement.